Investing.com - European stocks were sharply higher on Tuesday, as markets recovered from Friday's terrorist attacks in Paris and investors eyed an upcoming report on German economic sentiment.
During European morning trade, the EURO STOXX 50 rallied 1.32%, France’s CAC 40 advanced 1.43%, while Germany’s DAX 30 jumped 1.30%.
Attackers killed more than 130 people in Paris on Friday, prompting retaliatory French air strikes against Islamic State in Syria.
But European equities recovered amid expectations the European Central Bank will enlarge its stimulus program, aimed at boosting price growth in the euro area, before the year-end.
Financial stocks were broadly higher, as French lenders Societe Generale (PA:SOGN) and BNP Paribas (PA:BNPP) gained 0.82% and 0.72%, while Germany's Commerzbank (DE:CBKG) advanced 0.44%.
Among peripheral lenders, Italy's Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) climbed 0.63% and 0.64% respectively, while Spanish banks Banco Santander (MC:SAN) and BBVA (MC:BBVA) rallied 1.07% and 0.99%.
On the downside, Volkswagen (DE:VOWG) dropped 0.51% following news that carmaker manipulated the carbon dioxide emission levels of more petrol-powered vehicles than previously disclosed.
In London, commodity-heavy FTSE 100 jumped 1.30%, helped by sharp gains in the mining sector.
Shares in Fresnillo (L:FRES) advanced 0.45% and Antofagast climbed 0.80%, while Rio Tinto (L:RIO) and Glencore (L:GLEN) rallied 1.62% and 2.41% respectively.
Financial stocks were also on the upside, as the Royal Bank of Scotland (L:RBS) and Barclays (L:BARC) gained 0.64% and 0.75% respectively, while Lloyds Banking (L:LLOY) and HSBC Holdings (L:HSBA) rallied 1.10% and 1.16%.
Meanwhile, easyJet (L:EZJ) plummeted 2.24% even after the budget airline reported a full-year profit in line with its forecast range.
In the U.S., equity markets pointed to a steady open. The Dow Jones Industrial Average futures pointed to a 0.03% uptick, S&P 500 futures signaled a 0.05% gain, while the Nasdaq 100 futures indicated a 0.02% rise.